US dollar narrows losses on possible new rate hike

The US dollar narrowed losses over renewed expectation of another hike of interest rate by the US Federal Reserve.

In late New York trading on Wednesday, the euro was up to $1.1588 from $1.1572 in the previous session, and the British pound was up to $1.2912 from $1.2902 in the previous session, Xinhua news agency reported.

The Australian dollar fell to $0.7345 from $0.7365.

The US dollar bought 110.57 Japanese yen, higher than 110.41 Japanese yen of the previous session. The US dollar was down to 0.9834 Swiss franc from 0.9852 Swiss franc, and it decreased to 1.3005 Canadian dollars from 1.3044 Canadian dollars.

The dollar index, which measures the greenback against six major peers, fell 0.11 per cent to 95.1473.

Federal Reserve was considering another rise of interest rate on its meeting dated from July 31 to August 1, according to minutes of the meeting revealed on Wednesday.

Members of the Federal Open Market Committee agreed to update the characterisation of their expectation for the evolution of the federal funds rate in the post-meeting statement to point to "further gradual increases" while maintaining the target range at the current meeting, said the minutes.

--IANS

pgh/